Times Of Swaziland: STATUS CAPITAL SUSPENDS INTEREST PAYMENTS TO INVESTORS STATUS CAPITAL SUSPENDS INTEREST PAYMENTS TO INVESTORS ================================================================================ Sithembile Hlatshwayo on 03/07/2024 07:33:00 MBABANE – Status Capital Building Society has suspended payments of monthly interest to its members. The members were informed about the latest development during a meeting on Monday at Bethel Court in Ezulwini. There are over 121 investment account holders, who were receiving monthly interest from Status Capital. Following the meeting, the members revealed to this publication that they were not happy about the unfortunate news, which was relayed to them. According to the members, they were told that the organisation’s coffers were dry and had to at least wait for three months and take it from there. Suspension The members noted that following the suspension of the payment of the interest earned, they no longer trusted anything and were doubtful they would ever get back their invested monies. They stated that some of them had invested in Ecsponent, now Eswatini Investment Group (Pty) Ltd, and such news was a double tragedy to them. Asked how much they had invested in Status Capital, the members said it was E50 000 and upwards, depending on how much a person received as an exit package from their various areas of employment. They stated that they were warned by officers at Status Capital not to tell or give the information to anyone but due to their disappointment, they could not keep quiet. According to the members, most of them are pensioners and need the money to survive. “This money was assisting us a lot and we were able to buy sugar, bread, mealie-meal and many other things, because we no longer have a salary,” the members said. When asked about the allegations made by the members, Status Capital Building Society Managing Director (MD) Sibusiso Dlamini, said it was no secret that the society had faced challenges due to the alleged misappropriation of over E100 million of investor funds by some co-directors. The MD said the alleged diversion of funds had led to substantial delays in the disbursement of monthly interest payments to investment account holders, provoking significant distress among the members. Despite the turbulence, he said the organisation was committed to navigating through with the utmost determination to recoup the members’ investments. This, Dlamini said, had led to ongoing legal proceedings, which impacted critical resources essential for the continuation and survival of the institution, placing the livelihoods of their investors in jeopardy. As a result of attempts to recover these funds, the MD stated that they are currently experiencing a period of substantial delays in disbursing the monthly and matured interest payments to their account holders. “We are aware of the hurdles we need to overcome in order to rectify these issues and remain fully dedicated to addressing them head-on and we are confident in our abilities and the arms of justice to navigate them successfully.” Dlamini said they fully recognised and profoundly understood the hardships the situation had caused to their investors and were earnestly asking for continued patience and support as they navigate through the complex period. Disappointments According to Dlamini, although some members cited disappointments when the news was delivered to them, a number of them rallied behind the entity to hold those responsible accountable and ensure recovery. He said the members were further informed that evidence showed that the efforts to frustrate their operations were very deliberate and well-funded by one of the former directors through his various schemes of companies. Dlamini said, while the recent developments were undoubtedly distressing, it was important to acknowledge that many of the members had been able to receive payments until now, despite the financial strains they had been experiencing. Asked whether the society had any alternative remedy available to avert the situation, the MD stated that they were taking every possible measure to ensure that they resumed normal operations at the earliest opportunity. He mentioned that engagements with the investors and stakeholders had proven to be constructive, adding that also support shown by all parties involved further validated their confidence in the path ahead in ensuring that justice would be served. Resolutions Dlamini said the society continued to uphold the resolutions made in the previous special general meeting, which was held with members who were to continue legal action against the former directors and associated investment firms; ensure phased disbursements to maturing members as funds debentures were received and foster open and transparent communication between the organisation and its members regarding society matters. In this regard, the MD said they were unwavering. Meanwhile, Dlamini said they appreciated the interest from the press, but urged that they respect their process and provide them the space needed to address the challenges internally, to avoid consequently affecting the process. It should be noted that the company once moved an application in court after learning that over E82 million invested through Status Capital Building Society had been purportedly diverted out of the country, without authorisation, by another local company.